Calls for Closer Scrutiny of Foreign Investors

He says more needs to be done to ensure that the FIB deploys a due diligence process that is both rigorous and thorough.

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Monday, 12 September 2016 10:46 AM

Government has been urged to put in place stringent processes when it comes to dealings with foreign investors.

Concerns has been raised that the ease in which foreign investors are entering the country warrants a thorough assessment of how business licenses are being granted.

“There are many investors in the logging, mining and even the business sector that come in with relative ease, with no due diligence process, doing business in the country,” stated Ronald, a local timber exporter.

“I have had dealings with few of these investors who have conned me, taking samples with promised investments and nothing happens.

Ronald claims that he is also owed money for shipments he made to a business partner who recently set up a company in the Solomon Islands.

“I trusted the company because it was registered in the Company Haus, so I thought maybe he is what he claims to be.”

A source within the Foreign Investment Board (FIB) says that there are companies that have been issued licenses, “even though there are clear indications that the company does not have the capital to operate in the country.”

He says more needs to be done to ensure that the FIB deploys a due diligence process that is both rigorous and thorough.

“We have had a lot of problems particularly in the mining sector where certain companies without the proper capital or expertise wreak havoc within communities.

“We need to ensure that those companies that operate in our country come here with the right credentials, and not here to scam communities and our country.”

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